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Old 30th Nov 2006, 11:20
  #210 (permalink)  
akerosid
 
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EU delays decision on FR takeover of EI

The EU has delayed until the 20th December a decision on Ryanair's planned takeover of EI, which was originally scheduled for the 6th; the EU move has apparently been triggered by FR's decision to increase its shareholding to 25%. The airline can still, under Irish takeover rules, increase its holding to 29.9% without having to make another bid.

So, what can the EU do? Well, for a start, it will need to consider the opposition and the likelihood of FR actually being able to take over the airline, as it wishes; with over 46% of shares against it, that will be difficult, so it's hard to argue that competition will be undermined and I can't see FR being asked to axe routes on which both airlines compete, as there is no evidence of collusion or of fares being controlled?

http://investing.reuters.co.uk/news/...U-UPDATE-1.XML
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